NSEI:JBCHEPHARM

Stock Analysis Report

J. B. Chemicals & Pharmaceuticals

Executive Summary

J. B. Chemicals & Pharmaceuticals Limited manufactures and markets various pharmaceutical formulations, herbal remedies, and APIs in India and internationally.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.

Share Price & News

How has J. B. Chemicals & Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JBCHEPHARM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.0%

JBCHEPHARM

7.9%

IN Pharmaceuticals

-3.6%

IN Market


1 Year Return

26.6%

JBCHEPHARM

-14.9%

IN Pharmaceuticals

-32.1%

IN Market

Return vs Industry: JBCHEPHARM exceeded the Indian Pharmaceuticals industry which returned -14.8% over the past year.

Return vs Market: JBCHEPHARM exceeded the Indian Market which returned -32.1% over the past year.


Shareholder returns

JBCHEPHARMIndustryMarket
7 Day-12.0%7.9%-3.6%
30 Day-23.5%-9.6%-25.1%
90 Day2.6%-7.2%-30.2%
1 Year30.8%26.6%-13.6%-14.9%-30.7%-32.1%
3 Year32.7%27.2%-22.6%-24.7%-19.8%-24.1%
5 Year123.3%99.8%-34.0%-36.3%-10.4%-15.2%

Price Volatility Vs. Market

How volatile is J. B. Chemicals & Pharmaceuticals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is J. B. Chemicals & Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

14.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JBCHEPHARM (₹447.3) is trading below our estimate of fair value (₹521.74)

Significantly Below Fair Value: JBCHEPHARM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: JBCHEPHARM is poor value based on its PE Ratio (13.5x) compared to the Pharmaceuticals industry average (11.7x).

PE vs Market: JBCHEPHARM is poor value based on its PE Ratio (13.5x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: JBCHEPHARM is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: JBCHEPHARM is overvalued based on its PB Ratio (2.3x) compared to the IN Pharmaceuticals industry average (1.1x).


Next Steps

Future Growth

How is J. B. Chemicals & Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JBCHEPHARM's forecast earnings growth (13% per year) is above the savings rate (6.5%).

Earnings vs Market: JBCHEPHARM's earnings (13% per year) are forecast to grow slower than the Indian market (19.2% per year).

High Growth Earnings: JBCHEPHARM's earnings are forecast to grow, but not significantly.

Revenue vs Market: JBCHEPHARM's revenue (12.4% per year) is forecast to grow faster than the Indian market (8.8% per year).

High Growth Revenue: JBCHEPHARM's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JBCHEPHARM's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

How has J. B. Chemicals & Pharmaceuticals performed over the past 5 years?

14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JBCHEPHARM has high quality earnings.

Growing Profit Margin: JBCHEPHARM's current net profit margins (15.3%) are higher than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: JBCHEPHARM's earnings have grown by 14.3% per year over the past 5 years.

Accelerating Growth: JBCHEPHARM's earnings growth over the past year (49.3%) exceeds its 5-year average (14.3% per year).

Earnings vs Industry: JBCHEPHARM earnings growth over the past year (49.3%) exceeded the Pharmaceuticals industry 22%.


Return on Equity

High ROE: JBCHEPHARM's Return on Equity (17%) is considered low.


Next Steps

Financial Health

How is J. B. Chemicals & Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: JBCHEPHARM's short term assets (₹12.2B) exceed its short term liabilities (₹3.1B).

Long Term Liabilities: JBCHEPHARM's short term assets (₹12.2B) exceed its long term liabilities (₹587.3M).


Debt to Equity History and Analysis

Debt Level: JBCHEPHARM's debt to equity ratio (3%) is considered satisfactory.

Reducing Debt: JBCHEPHARM's debt to equity ratio has reduced from 11.8% to 3% over the past 5 years.

Debt Coverage: JBCHEPHARM's debt is well covered by operating cash flow (583.5%).

Interest Coverage: JBCHEPHARM earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: JBCHEPHARM has a high level of physical assets or inventory.

Debt Coverage by Assets: JBCHEPHARM's debt is covered by short term assets (assets are 25.9x debt).


Next Steps

Dividend

What is J. B. Chemicals & Pharmaceuticals's current dividend yield, its reliability and sustainability?

2.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JBCHEPHARM's dividend (2.23%) is higher than the bottom 25% of dividend payers in the Indian market (0.96%).

High Dividend: JBCHEPHARM's dividend (2.23%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: JBCHEPHARM's dividend payments have been volatile in the past 10 years.

Growing Dividend: JBCHEPHARM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15%), JBCHEPHARM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JBCHEPHARM's dividends in 3 years are forecast to be thoroughly covered by earnings (14.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.0yrs

Average board tenure


CEO

Jyotindra Mody (90yo)

no data

Tenure

₹64,076,000

Compensation

Mr. Jyotindra Bhagwanlal Mody serves as Chairman and Managing Director at J. B. Chemicals & Pharmaceuticals Ltd. Mr. Mody has experience of over four decades in the Indian pharmaceutical industry. Mr. Mody ...


CEO Compensation Analysis

Compensation vs Market: Jyotindra's total compensation ($USD839.82K) is above average for companies of similar size in the Indian market ($USD344.71K).

Compensation vs Earnings: Jyotindra's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Jyotindra Mody
Chairman & MDno data₹64.08m6.99% 2.4b
Pranabh Mody
Presidentno data₹28.11m9.51% 3.3b
Kamlesh Udani
Director of Technical & Production and Executive Directorno data₹18.18m0.071% 24.5m
Shirish Mody
Director of Marketing & Whole-Time Directorno data₹64.08m6.02% 2.1b
Bharat Sukhlal Mehta
Director of Planning & Development and Whole-Time Directorno data₹28.11m3.16% 1.1b
Shadrack Mapetla
Chairman of Biotech Laboratories (Pty ) Ltdno datano datano data
Rajiv Mody
Non-Executive & Independent Director14.92yrs₹480.00k0.0022% 772.4k
Satyanarain Agarwala
Independent Director9.75yrs₹980.00k0.0020% 703.1k
Krupa Gandhi
Independent Director6.25yrs₹900.00kno data
Devang Shah
Non-Executive Independent Director5.33yrs₹660.00k0.022% 7.6m

8.0yrs

Average Tenure

66.5yo

Average Age

Experienced Board: JBCHEPHARM's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: JBCHEPHARM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

J. B. Chemicals & Pharmaceuticals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: J. B. Chemicals & Pharmaceuticals Limited
  • Ticker: JBCHEPHARM
  • Exchange: NSEI
  • Founded: 1976
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: ₹34.638b
  • Shares outstanding: 77.28m
  • Website: https://www.jbcpl.com

Location

  • J. B. Chemicals & Pharmaceuticals Limited
  • Cnergy IT Park
  • Unit A2, 3rd floor & Unit A, 8th floor
  • Mumbai
  • Maharashtra
  • 400030
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
506943BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2001
JBCHEPHARMNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2001

Biography

J. B. Chemicals & Pharmaceuticals Limited manufactures and markets various pharmaceutical formulations, herbal remedies, and APIs in India and internationally. The company manufactures a range of specialty products that include various pharmaceutical dosage forms. Its principal products include Cilnidipine, Ranitidine, and Metronidazole. The company also provides contract manufacturing services for tablets, lozenges, injectables, gels, creams, ointments, liquid herbal syrups, and capsules; and medicated and herbal lozenges. J. B. Chemicals & Pharmaceuticals Limited was founded in 1976 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 13:48
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.